案例分析题Zones: Company information Zones is an overnight parcel delivery business. Since it was founded by the current CEO, it has grown rapidly due to a boom in online shopping. It now operates 1,000 delivery vehicles of various sizes. Recently, financial performance and market share have deteriorated. Zones has had no clear corporate vision, an excessive focus on financial objectives and inadequate systems to measure and manage performance of the underlying processes driving its financial performance. Business model Zones collection and delivery service uses delivery vehicles to transport parcels to and from local depots and individual addresses. Vehicles may also pick up parcels from the addresses to which they deliver. Each time the vehicle calls to pick up or deliver parcels is known as a stop, and the time of day for each stop is booked in advance. At the end of each day, vehicles, along with any parcels not delivered, return to the depot. Regardless of who pays for the service, Zones regards anyone to whom it delivers, or from whom it picks up parcels, as a customer. In the long term, the requirements of both of these groups for a competitively priced, reliable and flexible service will be similar. Performance improvement proposals The CEO believes that reductions in customer satisfaction and flexibility, caused by a decline in operational performance, may have led to the recent deterioration in financial performance and market share. It has been suggested that Zones use the Lynch and Cross performance pyramid (Appendix 1) to reverse this deterioration, and three new measures for operational performance have been suggested in Appendix 2. The CEO has stated that Zones corporate vision should be: To increase shareholder wealth by becoming the leading overnight parcel delivery business, providing quality, reliability and value for customers. It is also proposed to use the DMAIC (define, measure, analyse, improve and control) method to implement the six sigma methodology to improve the quality of delivery. Two measures have been defined in Appendix 3 which may help improve Zones delivery performance. Appendix 1 Lynch and Cross performance pyramid Appendix 2 Suggested new measures for operational performance Measure Description Vehicle utilisation Average utilisation of all vehicle capacity. This is measured by taking the average of vehicle load as a percentage of capacity when the vehicle leaves the depot at the beginning of each day and the vehicle load as a percentage of capacity when the vehicle returns to the depot at the end of each day. Capacity is measured either according to the internal volume or the length of the vehicle, depending on the type of vehicle being used. Fuel consumption Average litres of fuel per kilometre travelled for all vehicles. On-time stops Percentage of stops made within 30 minutes* of the booked time. * Zones receives complaints from customers relating to deliveries not made on time. Of these, less than 00001% relate to deliveries made within 30 minutes of the booked time. Appendix 3 Suggested new measures for improving quality of delivery using the DMAIC methodology Measure Description On-time stops Percentage of stops made within 10 minutes of the booked time. Failed deliveries Percentage of deliveries which cannot be made due to the customer being unavailable to take the delivery, or by parcels being incorrectly addressed. Currently, 5% of deliveries are failed and have to be returned to the depot. Required:

案例分析题Company information Achilty Retail (Achilty) is a stock exchange listed business which sells a range of clothes from a website to consumers in Beeland

案例分析题Perkin manufactures electronic components for export worldwide, from factories in Ceeland, for use in smartphones and hand held gaming devices

案例分析题Posie is a large business which manufactures furniture

案例分析题Cortinas Retail Clothing (CRC): Company information CRC started as a clothing retailer 20 years ago with one store

案例分析题Rezillos: Company information Rezillos Engineering (Rezillos) is a listed company, manufacturing pumps and valves for use in the chemical industries. These highly engineered components must be integrated into Rezillos customers own plant and equipment. The company has grown significantly via acquisition in the last 20 years to become a worldwide business. The overall objective of the company is to deliver sustainable growth in value to the shareholders by working in partnership with customers to deliver innovative and value-for-money solutions utilising the skills of the highly-trained workforce. The chief executive officer (CEO) has recognised that the company has been so focused on making acquisitions that it has not improved other aspects of management. He has asked you to produce a report for the board of Rezillos to cover a number of areas. Performance reporting system The CEO would like an evaluation of the performance reporting system used at the strategic board level by Rezillos. The current performance report used for the annual review at board meetings is given as an example (Appendix 1). Customer survey At the most recent round of meetings with stock market analysts, the board has been criticised about a customer survey whose results were announced at these meetings. The criticisms centred on the method of calculation, sampling and the disclosures in the press release. The board of Rezillos is concerned by the impact of this on their reputation in the market and needs to understand whether the criticism is justified. The press release and some further internal details about the method and the results of the customer survey are given in Appendix 2. Benchmarking proposal Rezillos has three divisions based in its three countries of operation (Beeland, Teeland and Veeland). In order to drive forward the integration of the divisions, the CEO has decided that they should be benchmarked against each other. He is aware that this is not the only method of benchmarking and so, initially, wants you to provide an understanding of the different types of benchmarking and an evaluation of the usefulness of the proposed type of benchmarking for the divisions. Finally, he has supplied data in Appendix 3 to allow you to complete the benchmarking exercise and comment on the metrics used and the results. It is now 1 December 20X8. Appendix 1 Note 1 Administration costs contain an allocation of product development costs to each division. Appendix 2 Press release from Rezillos: Customer survey results Rezillos has performed an extensive survey of its customer base and is proud to announce an average customer rating of 70 (out of 10). This bears positive comparison with a leading competitor of Rezillos who performed a survey last year scoring an average rating of 60. The survey asked for a customer rating on a scale of 0 to 10, where 10 was exceptional, 5 was good and 0 was unacceptable. End of press release Extract from Rezillos internal document on calculation of customer rating The survey was carried out by the staff at head office who sampled customers from all three divisions. Raw data Customer number Rating Account size ($m) Division 1 10 15 Beeland 2 9 33 Beeland 3 9 21 Beeland 4 6 64 Beeland 5 6 1520 Teeland 6 6 112 Beeland 7 6 105 Beeland 8 6 740 Veeland 9 5 210 Veeland Other notes: 1 The company has 180 customers in total. 2 The customer number is an identification number for administrative purposes. 3 Each division has its own marketing and customer support function although product development is a head office function. Appendix 3 (all data is for 20X8 unless otherwise stated) The benchmarking exercise is partly complete with the metrics requiring to be calculated identified by question marks. Beeland Teeland Veeland Benchmarking metrics Growth of market 85% 32% 50% Revenue growth 125% 32% 48% Operating margin 106% 128% 150% Inventory days 162 162 ? Order book growth 52% 53% ? Number of face-to-face interactions with divisions top 10 key customers 260 120 40 Percentage of revenue from new products introduced in the last three years 249% 290% ? Reduction in incident rate 34% 00% ? Utilisation of learning and development programme 120 126 ? Notes 1 The industry standard method of calculating incident rate is: Incident rate = number of incidents per year x 200,000/number of employee labour hours paid 2 The companys employees work on average 40 hours per week for 50 weeks per year. 3 Utilisation of learning and development programme is measured by the number of training days per employee. 4 Key customers are designated by the divisional management. 5 A single inventory management system has been implemented across the whole company. The following data has been collected to assist in the completion of the benchmarking exercise: Veeland Revenue from new products introduced in the last three years ($m) 163 Cost of sales ($m) 163 Inventory ($m) 267 Number of incidents (20X8) 68 Number of incidents (20X7) 74 Number of employees (20X8) 6,600 Number of employees (20X7) 6,250 Order book ($m) 20X8 932 Order book ($m) 20X7 885 Number of training days 6,450 Required: Write a report to the board of Rezillos to:

案例分析题Section A This ONE question is compulsory and MUST be attempted Flack Supermarkets (Flack) is a multi-national listed business operating in several developing countries. The business is divided into two divisions: Metro, which runs smaller stores in the densely populated centres of cities and Hyper, which runs the large supermarkets situated on the edges of cities. Flack sells food, clothing and some other household goods. Competition between supermarkets is intense in all of Flacks markets and so there is a constant need to review and improve their management and operations. The board has asked for a review of their performance report to see if it is fit for the purpose of achieving the companys mission of being: the first choice for customers by providing the right balance of quality and service at a competitive price. We will achieve this through acting in the long-term interests of our stakeholders: earning customer loyalty, utilising all our resources and serving our shareholders interests. This report is used at Flacks board level for their annual review. The divisional boards have their own reports. Also, there has been criticism of the board of Flack in the financial press that they are short-termist and so the board wants your evaluation of the performance report to include comments on this. A copy of the most recent report is provided as an example at Appendix 1. The board is considering introducing two new performance measures to address the objective of utilising all our resources. These are revenue and operating profit per square metre. The CEO also wants an evaluation of these two measures explaining how they might address this aspect of the mission, what those ratios currently are and how they could be used to manage business performance. There is information in Appendix 1 to assist in this work. There have been disagreements between Flacks divisional management about capital allocation. The divisions have had capital made available to them. Both sets of divisional managers always seem to want more capital in order to open more stores but historically have been reluctant to invest in refurbishing existing stores. The board is unsure of capital spending priorities given that the press comments about Flack included criticism of the run-down look of a number of their stores. The board wants your comments on the effectiveness of the current divisional performance measure of divisional operating profit and the possibility of replacing this with residual income in the light of these problems. As the company is opening many new stores, the board also wants an assessment of the use of expected return on capital employed (ROCE) as a tool for deciding on new store openings, illustrating this using the data in Appendix 2 on one new store proposal. The focus of comments should be on the use of an expected value not on the use of return on capital employed, as this is widely used and understood in the retail industry. Finally, the CEO has proposed to the board that a new information system be introduced. She wishes to spend $100m on creating a loyalty card programme with a data warehouse collecting information from customers cards regarding their purchases. Her plan is to use this information to target advertising, product range choices and price offers more efficiently than at present. Appendix 2 New store The following data has been forecast by the marketing department for the new store based on Flacks existing experience. There are three possible scenarios: The new store is expected to cost $42m to buy, fit out and stock. The target ROCE for Flack has been set at 13%. Required: Write a report to the board of Flack to: (i) Evaluate the performance report of Flack, using the example provided in Appendix 1, as requested by the board. (14 marks) (ii) Evaluate the introduction of the two measures of revenue and operating profit per square metre, as requested by the CEO. (8 marks) (iii) Assess the proposal to change the divisional performance measure. Note: No calculations of the current values are required. (8 marks) (iv) Calculate the expected return on capital employed for the new store and assess the use of this tool for decision-making at Flack. (8 marks) (v) Explain how the proposed new information system can help to improve business performance at Flack. (8 marks) Professional marks will be awarded for the format, style and structure of the discussion of your answer. (4 marks)

案例分析题Fearties: Company background Fearties Security (Fearties) is a business, owned and run by the Feartie family, which provides security personnel for other businesses (e.g. factory guards and security staff at large public events, for example, music concerts). The business has grown along with the market for outsourcing of security personnel roles and Fearties is one of the largest of such service providers in Beeland. The Feartie family has always managed the business to increase profits without excessive risk-taking. Most of the family are financially dependent on the business through their pay and dividends. The founder of the business was an accountant and it has become a family tradition that the chief executive officer (CEO) would always have an accounting background. As a result, the performance reporting has always focused on financial results. Recent events A new generation of the family has risen to power with a goal of increasing growth by expanding Fearties operations into different countries, using its existing reputation for reliability. The newly appointed CEO has recognised that the choice of key performance indicators (KPIs) may not be suited to the current business environment, where the company is facing various issues: changing government regulation with most customer-facing Fearties staff now required to hold a certificate showing they are aware of the relevant laws and health and safety procedures regarding their duties. Indeed, this factor is a reason for the growth of outsourcing to Fearties; difficulty in recruitment and retention as the pay for customer-facing staff is low by Beelands standards (even though Fearties provides full training for them); legal difficulties arising from claims of Fearties staff being too aggressive in the pursuit of their duties. The CEO has asked you to prepare a report to the board on the following performance management matters for Fearties and has provided you with information in Appendix 1 and Appendix 2 which may help you with the first two tasks: Existing KPIs and introduction of the balanced scorecard The CEO is considering the introduction of a balanced scorecard approach and wants an evaluation of whether the existing key performance indicators cover the financial perspective for the board. She has provided you with a draft copy of the most recent board report to illustrate current reporting (Appendix 1). This draft has been prepared quickly by a junior accountant and the CEO believes that there is an error in the return on capital employed calculation which you should correct. She then requires reasoned recommendations for two indicators within each of the remaining three perspectives (customer, internal business process and innovation and learning). These indicators should address the issues facing the business. Use of customer surveys In the past, the board has resisted the introduction of customer surveys due to worries about the ability to measure performance using this method. The CEO is aware that many of the new indicators from the introduction of the balanced scorecard are likely to be non-financial. Therefore, she has asked that you evaluate for the board the problems associated with measuring and managing performance using non-financial performance indicators (NFPIs) at Fearties, using customer surveys as an illustration. Management style Given these changes, there may have to be changes to the management style at Fearties. Therefore, the CEO also wants your assessment of the existing management style at Fearties and a justified recommendation for an appropriate approach. She has been taught about Hopwoods styles of using budget information (budget-constrained, profit-conscious, non-accounting) and so wants a brief definition of these prior to your assessment and recommendation. Human resources management: targets and appraisals Finally, given the issues facing Fearties noted above, the board will need advice on how to align human resource management with the organisations strategy. The current appraisal system consists of an annual appraisal meeting between the individual and their line manager and then, a discussion of the targets for that individual (which are all financial, based on the projections for the next financial year), followed by an explanation of their bonus payment based on the previously agreed targets. For this part of your report, the CEO believes that you should consider themanagement setting of targets in the light of the move to using a balanced scorecard. This should be followed by a discussion of how these targets might be used within the appraisal system. At this stage, no changes to the reward system (basic pay plus an annual bonus) at Fearties are desired. It is now 1 September 20X8. Required: Write a report to the board of Fearties to: (i) Respond to the chief executive officers (CEO) request for work on the existing key performance indicators (KPIs) and the introduction of the balanced scorecard. (ii) Evaluate the problems associated with measuring and managing performance using non-financial performance indicators at Fearties, using customer surveys as an illustration. (iii) Using Hopwoods styles, assess the existing management style at Fearties and recommend an appropriate approach. (iii) Using Hopwoods styles, assess the existing management style at Fearties and recommend an appropriate approach. Professional marks will be awarded for the format, style and structure of the discussion of your answer. Appendix 1 Key performance indicators 20X8 20X7 $m $m Revenue 686 659 Operating profit 36 34 Cash flow from operating activities 64 64 Dividends paid 14 13 Return on capital employed 211% 204% Appendix 2 Other information: Fearties Security Year ended 30 June 20X8 Profit information Dividend history $m 20X8 14 20X7 13 20X6 13 20X5 13 20X4 11 20X3 10

案例分析题Company information Arkaig Manufacturing (Arkaig) is a world-leading, listed manufacturer of production machinery for other industries

案例分析题Section B TWO questions ONLY to be attempted Chicory operates a chain of depots in Deeland, supplying and fitting tyres and other vehicle parts to lorries, buses and agricultural vehicles. Chicorys objective is to maximise shareholder wealth. Due to a slowdown in the Deeland economy, Chicorys recent performance has been weak. An unsuccessful acquisition has also caused cash flow problems and a write-off of goodwill of $247m in the year to 30 June 2017. The board has commissioned a benchmarking exercise to help improve Chicorys performance. This exercise will involve comparison of a range of financial and other operational performance indicators against Fennel, a similar business in Veeland. Fennel has agreed to share some recently available performance data with Chicory as they operate in different countries. The reason Fennel was chosen as a benchmark is that as well as supplying and fitting tyres and parts to heavy vehicles, a large part of Fennels business involves supplying electricity to charging points to recharge electric cars. Fennel installs and operates the charging points in public places, and users pay Fennel for the electricity they use. The board of Chicory intends to follow a similar business model as the use of electric cars is increasing in Deeland. The Veeland economy is growing strongly. Electric car use there has increased rapidly in the last two years, encouraged by tax incentives for businesses, like Fennel, to install and operate charging points. The Veeland government has also underwritten loans taken out by businesses to finance this technology, which has enabled Fennel to borrow funds for the significant capital investment required. The cost of components used in the charging points is falling rapidly. Capitalisation of development costs related to this technology is permitted in Veeland, but not in Deeland. In 2015, Fennel invested heavily in IT systems which significantly improved performance by increasing the availability of parts in its depots, and reducing inventories. Chicory uses return on average capital employed (ROCE) as its main financial performance indicator, and this is to be benchmarked against Fennel. One board member suggested that, though it may have some disadvantages, EBITDA (earnings before interest, tax, depreciation and amortisation) could have advantages as a performance measure over the existing measure, and should also be included in the benchmarking exercise. You have been given the most recently available financial data for both businesses in Appendix 1, with the data for Fennel being converted into $ from its home currency. Notes 1 $6m of new capital was introduced into Fennel on 31 March 2015. Normally, new net investment is spread evenly over the year. 2 Operating profit is after charging depreciation of non-current assets of $18m in Chicory, and $25m in Fennel. Required:

案例分析题Soup operates passenger rail services in Deeland, a technologically advanced country, with high demand for fast reliable rail travel from business and leisure passengers

案例分析题Sberry: Company information Sberry manufactures products which have a short lifecycle due to technological obsolescence. It aims to keep each product in production for at least 18 months so that it can recover the high cost of product development and make an acceptable profit before the product becomes obsolete. Sberry has always manufactured its products in its home country of Deeland, from where all materials are also sourced. Sales opportunity in Kayland An opportunity has been identified to export one of three newly developed products, Red, Blue and Green, to Kayland, due to citizens increasing levels of income there. The rate of technological obsolescence is slower in Kayland than in Deeland. The estimated levels of demand, selling prices and costs of the three products are shown in Appendix 1. Stakeholders views on the risks of the Kayland opportunity Three of Sberrys key stakeholder groups, employees, directors and shareholders, have been consulted for their views on the proposal to export to Kayland and, in particular, on which of the three newly developed products to export there. The employees have a cautious approach to the proposal following the recent failure of another product launch. That product was withdrawn as it breached poorly understood safety regulations and a number of employees lost their jobs as a result. The directors, all of whom are individually wealthy, have served on the board for many years and are keen to earn the large bonus which is currently offered solely on the total profit made by the new product over its lifecycle. The shareholders neither avoid nor seek risk, but they are keen that the company considers the external environment in Kayland in order to maximise performance there, whichever of the products is chosen to be exported. They have asked for a PEST* analysis of the environment in Kayland to be produced. A first draft of this has indicated that the exchange rate between the Deeland dollar (D$) and the Kayland dollar (K$) is a key economic factor which may affect performance. *Political, economic, socio-cultural and technological Appendix 1 Estimated levels of demand, selling prices and costs of the three newly developed1 products Red Blue Green Total demand (units)2 50,000 60,000 160,000 Selling price (K$)3 800 900 600 Total unit cost (D$)4 240 300 250 Notes to the appendix 1 Development costs are sunk costs and can be ignored. 2 The estimated product life of each of the three products is the same and the total demand is for the whole life of the product. 3 The current exchange rate between the D$ and the K$ is D$100 = K$200. Sberrys finance director has estimated that over the life of the product there is a 75% probability that the average exchange rate of the D$ will strengthen by 10% against the K$, and a 25% probability that the average exchange rate of the D$ will weaken by 10% against the K$. 4 At the current exchange rate, 50% of the total costs for each product is for materials which are imported from Kayland and invoiced in K$. There will be no opening or closing inventory, whichever of the three new products is chosen. Required:

案例分析题Section A This ONE question is compulsory and MUST be attempted Dargeboard Services (DS), a listed company, provides facilities management (FM) services where it manages such activities as cleaning, security, catering and building services on behalf of its clients. Clients can outsource to DS a single activity or often outsource all of these aspects in a full service contract. The mission of DS is to give the shareholders maintainable, profitable growth by developing the best talent to provide world-class services with maximum efficiency. The board have asked the chief executive officer (CEO) to review the effectiveness of Dargeboards systems for performance measurement and management. She has turned to you to begin this process by considering the strategic performance dashboard of DS. She has supplied the most recent example in Appendix 1. She wants a report to the board which will cover three aspects of strategic performance reporting at DS. First, it should address whether the current set of key performance indicators (KPIs) measure the achievement of the mission by showing how each one links to all or part of the mission. She does not want suggestions of new indicators. Second, taking each of the current indicators in turn she wants the assumptions underlying the calculation of the indicators examined. There has been a suggestion made in the press that DS is producing a biased set of results aimed to mislead the markets. This would then artificially boost the share price and so boost the value of the senior managements share holdings. Third, the report should evaluate the other presentational aspects of the dashboard against best practice. The idea of employee share ownership has always been at the heart of DS remuneration schemes. Its aim is to support an entrepreneurial culture and is a key differentiator in the market for new employees. The current reward system grants shares based on the appraisal of the individual by the line manager against vague categories such as leadership and entrepreneurship. The results of this scheme have been that only about 5% of staff received their maximum possible bonus in previous years and half of them received no bonus at all. Increasingly, this has led to the staff ignoring the reward scheme and describing it as only for the bosses favourite people. In response to this, the board have been discussing methods of analysing and improving the rewards system at DS. One non-executive director suggested using Fitzgerald and Moons building block model. The CEO was asked to consider this as a project separate from the issues of performance measurement mentioned above. She will select suitable indicators from the dimensions but currently needs you to explain to the board what is meant by results and determinants in this context and how the dimensions link to standards and targets. Finally, she believes that there are two types of reward scheme which might suit DS and wants an evaluation of their relative strengths and weaknesses. The scheme details are given in Appendix 2. KPI definitions and notes 1. Cleaning, security, catering and building services headings are for single service contracts. 2. No commentary is provided as the CEO talks the board through the dashboard at each board meeting. 3. Secured revenue is long-term recurring revenue. This is the percentage of budgeted revenue which is already contracted. The budget is often not completed until well into the year as it is a complex process. In 2016, the original budget showed revenue of $1,565m with the final budget signed off at the end of Q1 showing $1,460m. The secured (contracted) revenue for the period was $1,285m. The accounts show a year end revenue of $1,542m. 4. Management retention is the percentage of managers who were still employed throughout the whole year. The figure only includes those employees on full-time contracts (about 65% of all managers). 5. Order book is the total cash value of future contracted revenue. DS has contracts which run up to 10 years into the future. 6. Operating profit margin. This excludes exceptional items such as the reorganisation of the catering business which cost $55m in 2016, where revenue was $245m. 7. Organic revenue growth is calculated by using the total revenue figure as reported in the accounts. It includes net acquisitions which brought in revenue of $48m in 2016. 8. Return on capital employed (ROCE). Capital employed is total assets less current liabilities from the statement of financial position. Appendix 2 The CEO is considering two schemes, one based on the current scheme and a new scheme. Scheme 1 (based on the current scheme) The reward system grants shares in DS based on the appraisal of the individual by the line manager against vague categories (leadership and entrepreneurship). The line managers have been informed that their bonus will in turn be partly dependent on how well they perform this appraisal. The expectation will be that as a result, 20% of staff will receive their maximum possible bonus and 20% will receive no bonus. Scheme 2 (the new one) Under scheme 2, employee targets are to be derived from the strategic indicators depending on the employees area of responsibility. The senior management (with help from line management where appropriate) will cascade down the strategic indicators to the relevant operational or tactical level for that employee. There will be five targets set by senior and line management in consultation and the employee will then get up to 50% on top of their basic salary as a bonus (10 percentage points for each of the targets achieved). Required: Write a report to the board to: (i) Evaluate the links between the current key performance indicators at DS in Appendix 1 and its mission. (8 marks) (ii) Assess the assumptions and definitions used in the calculation of the current set of key performance indicators in Appendix 1. (12 marks) (iii) Evaluate the other aspects of reporting in the DS performance dashboard given at Appendix 1. (8 marks) (iv) Explain how the building block model works as required by the CEO. (6 marks) (v) Assess the two reward schemes given in Appendix 2. (12 marks) Professional marks will be awarded for the format, style and structure of the discussion of your answer. (4 marks)

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